Lukoil, Russia's largest private oil producer, has petitioned the government for tax relief as the discount on its Ural crude has risen sharply. The company argues that the current stabilization mechanism, introduced in 2008, unfairly burdens producers when prices fall below international benchmarks, and seeks to cap the tax discount to $10‑$15 a barrel instead of $20. If unchanged, producers could owe the state about 13 billion rubles (≈$170 million) in December alone. The Central Bank notes the Ural discount climbed to 23 % in November, a level that has pressured Russia's oil and gas revenue-about a third of federal income-amid sanctions and Ukrainian drone attacks that have curtailed refining capacity. Lukoil's net profit for H1 2025 fell by almost half, reflecting the steep drop in Ural prices to $35‑$39 a barrel. Kremlin officials say the discount is a temporary phenomenon and that exporters have adapted to new economic realities.

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